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Below The Quote on "Bank Nifty Write Up" by Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

The eventful day for Bank Nifty began with a negative tone, but a significant rebound occurred in the first hour, recovering all the earlier losses, just before a crucial monetary decision. As the decision aligned with expectations, prices started to decline with some initial volatility. The latter part of the day saw prices trading within a certain range, ultimately concluding with a loss of 0.76% at 44542.

This high beta index remains uncertain at higher levels, and prices have fallen below the 50 SMA, which has recently played a pivotal role. The price charts seem distorted, and the momentum indicator, RSI Smoothened has dropped below the median level of 50 and the previous swing low levels. Going ahead, this weakness may persist, and we continue to hold the view that it's advisable to avoid aggressive long positions unless the 20EMA, currently placed around 45100 levels, is not breached on the upside. Conversely, we do not recommend going short either, as the higher time frame charts maintain a positive outlook and if prices move towards the 44150 – 44000 range, it might be a suitable opportunity to re-enter long positions. This support zone consists of a weekly swing high that coincides with the 89EMA on the daily chart. In such a scenario, focusing on individual stocks would be a prudent strategy, given that certain heavyweight stocks are positioned near key support levels and some high beta counters displayed strength in today’s session.

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